ITT EDUCATIONAL SERVICES, INC. et al.

Case No. 16-07207-JMC-7A in the United States Bankruptcy Court for the Southern District of Indiana, Indianapolis Division

On Sept. 16, 2016, ITT Educational Services, Inc., ESI Service Corp., and Daniel Webster College, Inc. (collectively “ITT”) filed for Chapter 7 bankruptcy in the United States Bankruptcy Court for the Southern District of Indiana. In 2017, the Project on Predatory Student Lending (PPSL) filed a class action lawsuit to assert the claims of former ITT students in the ITT bankruptcy proceedings. In November 2018, the Bankruptcy Court approved a class action settlement for students who attended ITT from 2005 until it closed in 2016. You are a member of that class.

On February 23, 2022, the Bankruptcy Court approved a plan to distribute money from ITT's bankruptcy estate to the members of the student class. As of December 2023, the Chapter 7 trustee has distributed to American Legal Claims Service (ALCS) all of the money that will be received by the student class.

The distribution formula is based on the number of credits earned or attempted by a given student at ITT Technical Institute or Daniel Webster College. Specifically, each class member will receive a portion of the funds available for distribution based on the number of credits they earned and the credits they attempted to earn but did not complete divided by the total credits earned and attempted by all members of the class. The earned credits will be weighted at three times the attempted credits.

 There was an initial distribution of money by ALCS to members of the student class in Summer 2022, and this is the second distribution. There will likely be at least one additional distribution of money to the student class to distribute funds from checks that are never cashed by members of the student class.

The 2nd distribution was based upon $.8499 per hour attempted (not earned) and $2.5497 per hour earned. It also includes one or more amounts from the 1st distribution paid at the distribution rate of $.1046 per hour attempted (not earned), and $.3138 per hour earned.

If you have additional questions about the ITT bankruptcy case or this distribution, we encourage you to review the information on this website. Or you can visit the Project on Predatory Student Lending’s website to learn more about the case and their work at https://www.ppsl.org/cases/villalba-v-itt.

You are not being sued.

 

If you are a former student of ITT Technical Institute or Daniel Webster College (together “ITT”), you may be entitled to money being distributed from ITT’s bankruptcy estate.

The following are key dates regarding the current distribution:

Second Payment Distribution March 1, 2024
Second Distribution Stale Date May 30, 2024